Pinnacle Financial Partners(PNFP) - 2025 Q1 - Quarterly Results

Financial Performance - Pinnacle Financial Partners reported a diluted EPS of $1.77 for Q1 2025, up 12.7% from $1.57 in Q1 2024; adjusted diluted EPS was $1.90, a 24.2% increase from $1.53[1][2]. - Pre-tax income for Q1 2025 was $170,407 thousand, up from $151,275 thousand in Q1 2024, indicating a 12.7% increase[36]. - Basic earnings per common share for Q1 2025 were $1.78, compared to $1.58 in Q1 2024, marking a 12.7% increase[38]. - Diluted earnings per common share for Q1 2025 were $1.77, up from $1.57 in Q1 2024, reflecting a 12.8% increase[38]. - Net income available to common shareholders was $136,610 thousand for the quarter, compared to $120,146 thousand in the same quarter of the previous year, reflecting a 13.66% increase[28]. Asset and Loan Growth - Year-over-year loan growth was 9.0%, with total loans reaching $36.1 billion as of March 31, 2025, compared to $33.2 billion a year earlier[3][5]. - Total assets increased to $54.3 billion, reflecting a year-over-year growth of 11.0%[4]. - Total assets reached $54,254,804 thousand, representing a 3.16% increase from $52,589,449 thousand in December 2024[28]. - Total loans increased to $36,136,746 thousand in March 2025, up 1.83% from $35,485,776 thousand in December 2024[28]. - The company anticipates loan growth guidance of 8% to 11% for 2025 compared to 2024 year-end loan balances[5]. Income and Revenue - Net interest income rose to $364.4 million, a 14.6% increase from $318.0 million in Q1 2024; net interest margin improved to 3.21% from 3.04%[8][9]. - Noninterest income decreased to $98.4 million, down 10.6% year-over-year, but adjusted noninterest income increased by 12.9% to $110.9 million[9][10]. - Total revenues excluding adjustments for Q1 2025 were $475,366 thousand, compared to $416,325 thousand in Q1 2024, reflecting a 14.2% year-over-year growth[36]. - Noninterest income totaled $98,426 thousand in March 2025, down from $111,55 thousand in Q4 2024, primarily due to a decline in other noninterest income[25]. Expenses and Efficiency - Noninterest expense for Q1 2025 was $275.5 million, a 13.7% increase from $242.4 million in Q1 2024; adjusted noninterest expense rose by 17.2%[11][12]. - Salaries and employee benefits increased by 17.9% to $172.1 million, driven by headcount growth and higher incentive payouts[14]. - The efficiency ratio improved to 59.52% in March 2025, compared to 63.37% in March 2024[28]. - The efficiency ratio for Q1 2025 was 59.52%, compared to 56.61% in Q1 2024, showing a decline in efficiency[36]. Credit Quality and Allowances - The annualized net loan charge-offs to average loans ratio improved to 0.16% compared to 0.24% in the previous quarter[15]. - Nonperforming assets to total loans increased to 0.48% from 0.42% in the previous quarter[15]. - The allowance for credit losses to total loans was 1.16%, consistent with the previous quarter[15]. - Provision for credit losses decreased to $16.96 million in Q1 2025 from $29.65 million in Q4 2024, indicating improved credit quality[25]. - Nonaccrual loans increased to $171,570 thousand in March 2025, up 16.0% from $147,825 thousand in December 2024[33]. Capital and Equity - Shareholders' equity to total assets was 12.1%, a slight decrease from 12.2% as of December 31, 2024[15]. - The book value per common share increased to $81.57 from $80.46 at the end of 2024[15]. - The tangible book value per common share at the end of Q1 2025 was $57.47, up from $51.98 in Q1 2024, indicating an increase of 10.5%[38]. - Net tangible common equity rose to $4,456,749 thousand in Q1 2025, compared to $4,344,072 thousand in Q4 2024, an increase of 2.6%[41]. Employee Metrics - The number of employees (full-time equivalent) increased to 3,595 in March 2025, up from 3,565.5 in December 2024[35]. - The annualized revenues per full-time equivalent employee were $522.2 thousand, a decrease from $530.4 thousand in the previous quarter[35]. - The total assets per full-time equivalent employee increased to $15,092 thousand in March 2025, compared to $14,750 thousand in December 2024[35]. Market Position and Recognition - Pinnacle Financial is recognized as the No. 1 bank in the Nashville-Murfreesboro-Franklin MSA according to 2024 FDIC deposit data[17]. - Pinnacle Financial has been recognized as one of America's Best Banks to Work For for 12 consecutive years[17]. - The firm plans to continue expanding its operations in urban markets across the Southeast[18].